Welcome to an easy-to-follow Q&A guide, designed to clarify the sometimes confusing world of contracts.
Ever been confused about how to sign a contract? You are not alone. We are here to explain the basics and make signing contracts easy to understand for everyone.
Q1: Are electronic signatures legally valid?
Yes. Electronic signatures are recognised as legally valid under laws such as the Digital Signature Act 1997 and the Electronic Commerce Act 2006. However, electronic signatures cannot be used for certain documents such as Power of Attorney and such documents must be properly executed according to relevant legal requirements.
Q2: Must all parties sign on the same copy of a contract?
Not at all. Parties can sign the contracts in counterparts, meaning each party can sign a separate copy. When combined, these copies constitute the full, enforceable agreement.
Q3: How many copies of a contract need to be signed?
The number of copies that need to be signed typically corresponds to the number of parties involved. For instance, in a two-party agreement, each party would sign two copies in a physical setting. In the case of electronic signing, a single copy is adequate.
Q4: Is it necessary to sign or initial every page of a contract?
No. It is not mandatory to sign every page. Generally, signatures are only needed on the designated signatory sections (it is usually located at the last page of the contract). However, initialling each page can prevent unauthorised alterations to the contract.
Q5: Are witness signatures required for all contracts?
Business contracts usually do not need a witness. Personal documents like wills, often require witness signatures for added legitimacy and to uphold the document in a legal setting.
Q6: Is it necessary to stamp a signed contract?
Stamping signifies that any applicable taxes or duties on a document have been paid. Even without stamping, a contract that is properly signed by all parties is still a legally binding document. However, for a contract to be admissible in court as evidence, it needs to be stamped. Contracts should be stamped promptly after signing (within 30 days from its execution) to avoid late penalties.
This Q&A is intended to simplify your approach to contract signing. Remember, while we provide a basic outline here, the specifics can differ based on where you are and the details of your situation.
Shen Ming is a corporate and commercial lawyer who is deeply committed to supporting her clients in achieving their business goals. Specialising in commercial and employment law, she demonstrates her expertise by crafting and reviewing various types of commercial agreements.
View her full profile here.
